BG assigns 10-year gas deal to Electricite de France affiliate

BG International Ltd., a subsidiary of BG Group PLC, has agreed to assign to EDF Trading Ltd. its interests and obligations in agreements to sell to Wingas GMBH of Germany 20 billion cu m of gas over 10 years.

Apr 26th, 2001


By the OGJ Online Staff

HOUSTON, Apr. 26 -- BG International Ltd., a subsidiary of BG Group PLC, has agreed to assign to EDF Trading Ltd. its interests and obligations in agreements to sell to Wingas GMBH of Germany 20 billion cu m of gas over 10 years.

Deliveries on that 1996 agreement began in 1998. Losses were expected and provided for in the Centrica demerger in 1997, said BG.

BG has also entered into arrangements for the supply of gas to EDF Trading, and has agreed to pay EDF Trading £184 million in cash.

BG said the agreements will allow it to discharge its responsibilities economically.

The agreement includes transportation capacity in the UK-to-Belgium Interconnector and Distrigaz of Belgium's transit system. However, BG said it intends to retain sufficient Interconnector capacity to maintain flexibility for trading its UK gas.

EDF Trading is a joint venture between Electricite de France and Louis Dreyfus Group. Wingas GMBH is a joint venture between Wintershall AG and Gazprom.

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